SOCAR's net profit up 4.5 times

Azerbaijan’s State Oil Company (SOCAR) ended 2022 with a net profit of 9.4 billion manats ($5.5 billion), which is 4.5 times more than in 2021.

This is the highest indicator since 2008 when the company started compiling consolidated financial statements, Report informs.

In 2022, SOCAR's sales revenues amounted to 119.2 billion manats ($70.1 billion) (53.8 per cent more than a year earlier), cost of sales amounted to 104.5 billion manats ($61.4 billion) (52.2 per cent more), general and administrative expenses - 1.8 billion manats ($1.08 billion)(27.1 per cent more), interest income calculated using the effective interest rate method - 0.367 billion manats ($215.8 million)(62.4 per cent more), financial expenses - 1.537 billion manats ($904.1 million) (23.3 per cent more), income tax payments - 1.439 billion manats ($846.4 million) (23.8 per cent more).

On January 1, 2023, SOCAR's assets amounted to 80.8 billion manats ($47.5 billion), which is 16.55 per cent more than in 2022. During the reported period, the company's liabilities increased by 1.9 per cent up to 47.5 billion manats ($27.9 billion).

At the same time, the company’s current assets grew by 39.6 per cent amounting to 33.4 billion manats ($19.6 billion) in 2022, while total assets grew by 16.5 per cent amounting to 80.8 billion manats ($47.5 billion).

Despite the weakening of global economic activity and global inflationary pressures, SOCAR managed to end last year with strong results.

In particular, SOCAR increased its revenue margin from 11.4 per cent to 12.3 per cent and net profit by 346 per cent.

Most of the revenues came from sales of crude oil and petroleum products - a growth of 60.6 per cent and 25.9 per cent respectively. The biggest growth was seen in sales of natural gas – 151 per cent.

According to information, the utilisation rate of production capacity at the STAR refinery increased by 113 per cent, and the total turnover of Petkim increased by 70.3 per cent.

At the same time, the total production and export revenues of SOCAR Carbamidе grew by 51.2 per cent and 75.9 per cent respectively.

Thus, the total capital of SOCAR grew by 46.5 per cent up to 33.3 billion manats ($19.5 billion), and cash funds increased by 38.6 per cent up to 12.49 billion ($22.7 billion).